The Seafreight Index - an explanation

CostPartner’s Seafreight Index is a tool for comparing the percentage development of participants’ seafreight rates with the percentage development of the market, allowing you to see your own index and a shared market index at all times. As the name suggests, the tool is an index, which means that your actual rates are never revealed in absolute figures.

It is easy to participate

Interactive Spreadsheet ModelCostPartner is committed to ensuring that participation in The Seafreight Index does not become an administrative burden. For this reason, The Seafreight Index is based on rates and surcharges. This means that as a participant, you do not need to report your total TEU for the individual lanes during a specific period, nor do you have to enter new values if these figures should change. In practice, participation simply requires the willingness to report rates and surcharges for your lanes – neither more nor less.

A robust index

CostPartner’s primary concern was to prepare an index with the robustness to handle the arrival and departure of participants, an index that was, at the same time, easy to administrate for all the parties involved.

CostPartner has therefore run more than 4.8 million consequence simulations of the calculation model in The Seafreight Index, and has used the resulting data basis to develop The Seafreight Indexan interactive spreadsheet model that allows us to advise you regarding the robustness of the index.

In consultation with us, you can easily change the preconditions for the model, set your own requirements for acceptable fluctuations and confidence level, and thus lay the foundations for deciding whether the data basis for a given lane matches your criteria.

Transparent calculations

CostPartner stores all rates and surcharges in our database and processes them thereby taking into account changes in the currency exchange rates and the level of detail required – i.e. whether you want an output per country and/or harbour level.

The results are expressed as the following two indices: your individual index, which is specific to each participant, and a market index, which expresses the average development among all participants.